Let’s rejoice in the news that single family home prices in the Northern Palm Beaches just jumped to an all time record high.
Let’s jump for joy that interest rates sit at the lowest levels we have seen in over a year.
But it really isn’t a time to find great joy in the local real estate market if we take the luxury top end out of the picture. The number of single family home sales in, and around Jupiter, that closed during the first quarter were the lowest we have seen in 7 years. However, the percentage of those homes that sold for a million dollars or more hit 18% and that is an all time record high. The top of the market remains very healthy which is a testament to an economy that keeps giving us good news and more good news. As long as the economy continues to boom so will the top end of South Florida real estate.
Inventory levels fell during March, after 6 straight months of solid increases. Still a lack of quality inventory in many neighborhoods but great opportunities out there if you know how to find them. High prices hold back many buyers from pulling the trigger. Seller’s pricing ahead of the market and some really poor quality inventory continues to hold back sales from all they could be. New home opportunities remain extremely high priced or well off the beaten path. Go west if you want to find new construction at prices that won’t rock the boat.
The number of opportunities buyers will have to choose from will continue to dwindle over the next few months so if demand stays solid and interest rates remain low there may be some additional upside to prices. It may even be significant but the likelihood of significant increases should be held in check by affordability which is a huge problem for those looking to purchase their first home. But keep a close eye on the demand side of the equation.
The number of homes under contract in the Jupiter area, as of April 1st, are down 9% from last years numbers. We have to go back many years to find lower pending home sale numbers on this date and they are going to drop even further. You guessed it, affordability. We pretty much expect pending home sales to continue dropping over the next 6 months and if they drop too low, then prices could be under downward pressure which might be the best thing for the longer term strength of the market.
Paradise Sharks are here if you need us for anything. We are proud of kicking the middleman out of our real estate transactions. We are proud we give our buyer clients a significant rebate on every single purchase. We are proud to be able to offer you full service, world class listing packages as low as 4%. We would love to help you, however we can, so if you have a real estate problem you need to solve, just give us a call at 561.308.0175 and learn how easy it is to save real money and get exceptional service and decades of experience.